BALTIMORE ( Stockpickr) -- How do you think earnings season is going?
If you're pleased with companies' financial performance this quarter, you're in the minority. Investor sentiment is at such a negative extreme this month that contrarian investors should be paying attention.
A quick glimpse at the news headlines shows that's the case: the phrase "earnings season disappoints" returned nearly twice as many results on Google News for the last month as a positive query did. But the bearishness isn't justified - so far this earnings season, 75% of the S&P 500 has beaten Wall Street's expectations. That's an important message for investors who are willing to listen.After all, stocks are around 15% higher since June - if that's a bear market, bring on the recession. While too many investors remain fixated on the more conspicuous missteps (like Google's (GOOG) premature earnings miss courtesy of R.R. Donnelley (RRD) on Thursday), we're taking a look at five new Rocket Stocks set to rally this week. >>5 Stocks Under $10 Set to Soar For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 173 weeks, our weekly list of five plays has outperformed the S&P 500 by 75.49%. Without further ado, here's a look at this week's Rocket Stocks.